19 May 2024
Former FLC chairman Trinh Van Quyet was prosecuted 14

Former FLC chairman Trinh Van Quyet was prosecuted 14

Mr. Trinh Van Quyet, former chairman of FLC Group, was accused of manipulating 5 stock codes AMD, HAI, GAB, FLC, ART, thereby profiting more than 723 billion VND.

On April 8, the Supreme People’s Procuracy issued an indictment against former FLC Chairman Trinh Van Quyet and 49 people.

The Supreme People’s Procuracy prosecuted Mr. Quyet and 7 people for stock market manipulation and fraudulent appropriation of assets, including: Trinh Thi Minh Hue, an officer of the Accounting Department of FLC Group (Mr. Quyet’s younger sister);

>> List of 50 defendants

In the same case, the Supreme People’s Procuracy prosecuted Mr. Tran Dac Sinh, former Chairman of the Board of Directors of the Ho Chi Minh City Stock Exchange (HOSE);

Mr. Le Cong Dien, former Head of Public Company Supervision Department of the State Securities Commission;

13 other people, including many relatives of Mr. Quyet, were prosecuted by the Supreme People’s Procuracy for stock market manipulation;

Appropriated VND 3,620 billion from 30,400 securities investors

According to the indictment, Mr. Quyet established and became Chairman of the Board of Directors of FLC Group in 2009, trading in real estate, securities, and tourism services.

To appropriate investors’ money, Mr. Quyet directed Doan Van Phuong (former general director of FLC Group, Chairman of the Board of Directors of Faros Construction Joint Stock Company, currently absconding) and Trinh Thi Minh Hue to falsely increase the Company’s capital contribution.

Phuong and Hue asked a number of people to act as shareholders to receive the transfer of Faros’ shares.

The Supreme People’s Procuracy said that officials of the State Securities Commission, the Securities Depository Center and the HOSE floor used the above information to approve the listing of 430 million ROS shares.

Mr. Tran Dac Sinh, Le Hai Tra, Tram Tuan Vu, Le Thi Tuyet Hang were accused of knowing that there was not enough basis to determine the actual capital contribution of Faros, because Mr. Sinh had a relationship with Mr. Quyet, so they `accepted the invitation`.

Mr. Le Cong Dien, Duong Van Thanh, and Pham Trung Minh were also accused of knowing that there was not enough basis to determine Faros’s capital of VND 4,300 billion but still approved the registration of ROS shares.

The indictment stated that the defendants’ actions caused securities investors to mistakenly believe that ROS shares had real value.

Former FLC chairman Trinh Van Quyet before his arrest, late March 2022.

Manipulated 5 stock codes to gain more than 700 billion VND

On the charge of stock market manipulation, according to the Supreme People’s Procuracy, Mr. Quyet directed Hue’s sister to borrow documents from 45 other people in the names of 20 businesses and open 500 securities accounts, in order to profit from the shares.

The 5 stock codes AMD, HAI, GAB, FLC, ART were continuously bought and sold by Mr. Quyet’s group in large volumes, dominating the market at the opening and closing of the trading session.

Specifically, in the middle two months of 2017, AMD shares helped Mr. Quyet gain illegal profits of VND 39 billion.

The manipulation of AMD shares took place before the 2015 Penal Code took effect, so Mr. Quyet must bear criminal responsibility for the remaining 4 codes, a total of 684 billion VND.

The behavior of Mr. Quyet’s group was determined to be `illegally gaining a particularly large amount of money`, very serious, violating the economic management order of the State in the field of securities and the stock market,

Mr. Quyet was identified as the mastermind, decision maker, and director of opening, managing, and using securities accounts;

Ms. Hue `practiced most actively` to help Mr. Quyet commit the crime.

Mr. Quyet’s other biological sister, Ms. Nga, was determined to direct all the false funding of accounts managed by Hue to manipulate the stock market.

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